Netflix’s ad-supported tier has reached 70 million global monthly active users two years after its launch. The company said more than 50% of its new sign-ups are for ad-supported plans in countries that offer the option. Netflix said it continues “to see positive momentum and growth across all areas of the business,” adding it has seen “steady progress across all countries’ member bases.”
Netflix launched the option in November 2022 as one of its responses to a slowdown in subscriber growth. Subscriber growth hasn’t been an issue recently. Last month, Netflix reported adding 5.1 million subscribers during the third quarter, beating Wall Street estimates. In total, Netflix counts 282.7 million memberships across all of its pricing tiers. Beginning next year, Netflix said it will no longer update investors on its subscriber numbers as it shifts focus toward revenue and other financial metrics as performance indicators.
When Netflix launched its ad platform two years ago, the company said Nielsen would rate its content. In May, Netflix announced that it would air two National Football League games on Christmas Day this year as part of a three-year deal. On Tuesday, it said it sold out of its ad inventory for the two live games. Netflix also said it’s brought on FanDuel and Verizon as advertisers for the games. FanDuel will become the exclusive pregame sportsbook betting partner, Netflix said, and it will have a sponsored in-show feature.
Media companies have been focusing on ad-supported strategies for their streaming options, which woo customers with cheaper plans and also offer advertising revenue that can help move streaming businesses toward profitability. While the ad market has been slow for traditional TV, it has grown for streaming and digital businesses. Netflix offered its last update on its ad-supported tier in May when it said it reached 40 million global monthly active users, nearly doubling the figure it had shared in January. That announcement came during Upfronts when media companies make their pitches to advertisers.
Netflix also announced in May it would launch its advertising platform, ending a partnership with Microsoft for that technology. The platform has been rolled out in Canada, and it plans to launch in the U.S. by the end of the second quarter of next year. It plans to set the platform live everywhere by the end of 2025.
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